Main reasons to start your Totton lease extension

Main reasons to start your Totton lease extension today:

Increase your lease and increase your Totton property value

Unfortunately that a Totton residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Totton property prices.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than eighty years - otherwise a higher premium will be payable. Most flat owners in Totton will be able to extend under the legislation; however a conveyancer will be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the process.

An extended lease is almost the same value as a freehold

Leasehold properties in Totton with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Lenders will not grant a mortgage on a short lease

Banks and building societies are tightening their criteria and a meaningful number now want flats to have at least sixty if not seventy years remaining once the mortgage has expired. Given that plenty of flats in Totton were built in the fifties, sixties and seventies this means many now need to be extended if they if they are to be mortgageable.

Get in touch with one of our Totton lease extension solicitors or enfranchisement solicitors

Retaining our service gives you better control over the value of your Totton leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Totton Lease Extension Example Cases:

Jordan, Totton, Hampshire,

Off the back of lengthy correspondence with the landlord of her first floor flat in Totton, Jordan commenced the lease extension process as the eighty year mark was quickly approaching. The transaction was finalised in January 2015. The freeholder’s charges were kept to an absolute minimum.

Totton case:

Mr and Mrs. L Walker was assigned a lease of a one bedroom apartment in Totton in June 1999. The question was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical properties in Totton with 100 year plus lease were worth £254,200. The mid-range ground rent payable was £60 collected per annum. The lease expired in 2077. Having 51 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £43,700 and £50,600 exclusive of professional charges.

Totton case:

Mrs K Jones acquired a basement flat in Totton in August 2007. We are asked if we could estimate the premium would be for a ninety year lease extension. Identical flats in Totton with 100 year plus lease were in the region of £210,600. The average amount of ground rent was £45 billed annually. The lease finished in 2088. Having 62 years as a residual term we estimated the premium to the landlord for the lease extension to be between £18,100 and £20,800 plus expenses.